The ACT is a member of:
We are currently supporting:
Your company holds a large portfolio of corporate bonds. The portfolio characteristics have been discussed and approved at Board level so that any major changes are undesirable. However, the portfolio is less than perfect in that it is overweight in the bonds of one particular company. This company, Bad Credit PLC, is widely expected to be downgraded. Your holding of the Bad Credit's bonds will mature in 4 years.Which of the following actions could you take to mitigate the impact of a possible downgrading on your portfolio, assuming that the performance of the treasury department is measured by reference to the portfolio return over the longer term?
